UBS: CKH Holdings (00001) sells Vodafone Three equity, expected to increase net asset value and potential rise in dividend per share.

UBS released a research report stating that CKH HOLDINGS (00001) announced on the 5th that it would sell its 49% stake in Vodafone Three for 4.3 billion pounds (approximately 45.5 billion Hong Kong dollars). The bank estimated that if the transaction is completed, CKH HOLDINGS' net debt ratio could improve from 16.5% in December 2025 to 9.9%. The company is expected to record 4.7 billion Hong Kong dollars in sales proceeds and plans to use the cash mainly to strengthen the balance sheet, provide funds for future business expansion, and seek potential new investments or acquisitions. UBS believes that the sale proceeds may bring upside potential for dividends, with CKH HOLDINGS' net asset value (NAV) increase and potential dividend increases, which could bring a total upside potential of 1.74 Hong Kong dollars per share. The bank has a "buy" rating for CKH HOLDINGS with a target price of 67 Hong Kong dollars.